My client is director in unlisted limited company.Company is loss making and yet not paid salary to director and showing it in Balance sheet as Salary payable.
The query is such unrealized salary can be taxed in hands of director?
Claim is that salary not received then how can he pay tax on such income?
30 July 2016
The employer must have deducted the tax at source and paid the tds as per the provisions of tax laws as the salary shown as payable. In that case the employee has also to show the income under the head as salary which is due but not received.
30 July 2016
Income should be booked on Accrued Basis , Director Can discharge Income Tax based on Form-16 calculation, When actual Received than time he need not Pay tax.
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